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Costamare Inc. Reports Results for the Fourth Quarter and Year Ended December 31, 2013

Costamare Inc. Reports Results for the Fourth Quarter and Year Ended December 
31, 2013 
ATHENS, GREECE -- (Marketwired) -- 01/27/14 --  Costamare Inc.
("Costamare" or the "Company") (NYSE: CMRE) today reported unaudited
financial results for the fourth quarter and the year ended December
31, 2013. 


 
--  Voyage revenues of $112.5 million and $414.2 million for the three
    months and the year ended December 31, 2013, respectively.
--  Voyage revenues adjusted on a cash basis of $116.8 million and $429.2
    million for the three months and the year ended December 31, 2013,
    respectively.
--  Adjusted EBITDA of $75.7 million and $282.4 million for the three
    months and the year ended December 31, 2013, respectively.
--  Net income of $26.9 million and $103.1 million for the three months
    and the year ended December 31, 2013, respectively.
--  Net income available to common stockholders of $25.9 million or $0.35
    per share and $101.6 million or $1.36 per share for the three months
    and the year ended December 31, 2013, respectively.
--  Adjusted Net income available to common stockholders of $30.5 million
    or $0.41 per share and $108.8 million or $1.46 per share for the three
    months and the year ended December 31, 2013, respectively.

  
See "Financial Summary" and "Non-GAAP Measures" below for additional
detail. 
New Business Developments 
New Acquisitions 


 
--  We have ordered nine newbuilds with capacities between 9,000 and
    14,000 TEU pursuant to our joint venture agreement with York Capital
    Management ("York). The newbuilds are scheduled to be delivered
    between the 4th quarter of 2015 and the third quarter of 2016. The
    Company holds an equity interest ranging between 25% and 49% in each
    of the relevant vessel-owning entities. Long term time charters have
    been agreed for the five 14,000 TEU capacity newbuilds with members of
    the Evergreen Group ("Evergreen") which represent total contracted
    revenue for the joint venture of $ 850 million, assuming the exercise
    of the owner's options.

  
Deliveries of existing orders 


 
--  In November 2013, the Company took delivery of the 8,827 TEU newbuild
    containership vessel Vantage built by Sungdong Shipbuilding and Marine
    Engineering in South Korea. Upon delivery, the vessel commenced its
    long term charter with Evergreen.
    
    
--  In January 2014, the Company took delivery of the 9,403 TEU newbuild
    containership vessel MSC Azov built by Shanghai Jiangnan Changxing
    Heavy Industry in China. Upon delivery, the vessel commenced its long
    term charter with MSC.

  
New Financing Arrangements 


 
--  In January 2014 we agreed with a leading Chinese financial institution
    the refinancing of three of our newbuildings, under a ten-year sale
    and leaseback transaction. The refinancing of the first vessel, the
    9,403 TEU MSC Azov, became effective upon her delivery on January 14,
    2014. Under the sale and leaseback transaction, the vessel will be
    chartered back on a bareboat basis to one of our subsidiaries and will
    remain on time charter to its current time charterer.

  
New Chartering Arrangements 


 
--  In January 2014, the Company entered into an agreement to charter the
    2010 built 8,531 TEU vessel Navarino for a period of approximately one
    year to MSC. The vessel is expected to be delivered to its charterers
    in March 2014.
    
    
--  In October 2013, the Company entered into an agreement to extend the
    charter of the 1991 built 3,351 TEU vessel Karmen for a period of
    minimum two months and maximum six months with Sea Consortium at a
    daily rate of $6,800, starting from November 15, 2013.

  
Preferred Share Offering 


 
--  On January 21, 2014, the Company completed a public offering of 4.0
    million shares of its 8.50% Series C Cumulative Redeemable Perpetual
    Preferred Stock (the "Series C Preferred Stock"). The gross proceeds
    from the offering before the underwriting discount and other offering
    expenses were $100.0 million. We plan to use the net proceeds of this
    offering for general corporate purposes, including vessel acquisitions
    or investments under the Framework Agreement.

  
Dividend Announcements 


 
--  On January 2, 2014, we declared a dividend of $0.476563 per share of
    our Series B Preferred Stock paid on January 15, 2014, to holders of
    record on January 14, 2014.
    
    
--  On January 6, 2014, we declared a dividend for the fourth quarter
    ended December 31, 2013, of $0.27 per share of our common stock,
    payable on February 4, 2014, to stockholders of record at the close of
    trading of the Company's common stock on the New York Stock Exchange
    on January 21, 2014. This will be the Company's 13th consecutive
    quarterly dividend since it commenced trading on the New York Stock
    Exchange.

  
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc.,
commented: 
"During the fourth quarter of the year, the Company delivered
positive results while at the same time implementing its fleet
renewal and expansion strategy.  
Together with our partners we have ordered in total 9 newbuildings
with deliveries starting from the end of 2015. Five 14,000 TEU ships
have been chartered to Evergreen under long-term charters,
representing total contracted revenues of approximately $850 million. 
Regarding our existing newbuilding program, we accepted delivery of
eight out of the ten newbuildings ordered in total. The remaining two
deliveries are expected to take place in March and April of 2014.  
On the financing front, we have agreed to refinance three of our
newbuildings with a leading Chinese financial institution, and last
week we completed a public offering of 4.0 million perpetual
preferred shares, raising gross proceeds of $100.0 million.  
Regarding our chartering arrangements, our re-chartering risk is
minimized. The charters for the vessels opening in 2014 account for
approximately 3% of our 2014 contracted revenues. 
Finally, on January 2, we declared a dividend on our Series B
Preferred Stock, and on January 6, we declared a dividend on our
common stock.  
We are successfully executing on our growth strategy, having invested
and placed orders together with our partners close to $1.0 billion in
new projects since the inception of our joint venture 8 months ago.
This year also marks the 40th anniversary of Costamare. We feel we
are well positioned to continue to grow selectively and on healthy
grounds." 


 
                                                                            
                              Financial Summary                             
                                                                            
                                                        Three-month period  
                                                              ended         
                             Year ended December 31,       December 31,     
                            ------------------------ -----------------------
(Expressed in thousands of                                                  
 U.S. dollars, except share                                                 
 and per share data):            2012        2013        2012        2013   
                            ------------ ----------- ----------- -----------
Voyage revenue               $   386,155 $   414,249 $    95,193 $   112,549
Accrued charter revenue (1)  $     6,261 $    14,976 $     2,352 $     4,303
Voyage revenue adjusted on a                                                
 cash basis (2)              $   392,416 $   429,225 $    97,545 $   116,852
                                                                            
Adjusted EBITDA (3)          $   253,097 $   282,414 $    62,510 $    75,692
                                                                            
Adjusted Net Income                                                         
 available to common                                                        
 stockholders (3)            $    91,346 $   108,846 $    23,625 $    30,477
Weighted Average number of                                                  
 shares                       67,612,842  74,800,000  73,658,696  74,800,000
Adjusted Earnings per share                                                 
 (3)                         $      1.35 $      1.46 $      0.32 $      0.41
                                                                            
EBITDA (3)                   $   242,880 $   275,119 $    61,816 $    71,116
Net Income                   $    81,129 $   103,087 $    22,931 $    26,852
Net Income available to                                                     
 common stockholders         $    81,129 $   101,551 $    22,931 $    25,901
Weighted Average number of                                                  
 shares                       67,612,842  74,800,000  73,658,696  74,800,000
Earnings per share           $      1.20 $      1.36 $      0.31 $      0.35

 
(1) Accrued charter revenue represents the difference between cash
received during the period and revenue recognized on a straight-line
basis. In the early years of a charter with escalating charter rates,
voyage revenue will exceed cash received during the period, and
during the last years of such charter cash received will exceed
revenue recognized on a straight line basis.
 (2) Voyage revenue
adjusted on a cash basis represents Voyage revenue after adjusting
for non-cash "Accrued charter revenue" recorded under charters with
escalating charter rates. However, Voyage revenue adjusted on a cash
basis is not a recognized measurement under U.S. generally accepted
accounting principles, or "GAAP." We believe that the presentation of
Voyage revenue adjusted on a cash basis is useful to investors
because it presents the charter revenue for the relevant period based
on the then current daily charter rates. The increases or decreases
in daily charter rates under our charter party agreements are
described in the notes to the "Fleet List" below. 
 (3) Adjusted net
income, adjusted earnings per share, EBITDA and adjusted EBITDA are
non-GAAP measures. Refer to the reconciliation of net income to
adjusted net income and net income to EBITDA and adjusted EBITDA
below. 
Non-GAAP Measures 
The Company reports its financial results in accordance with U.S.
generally accepted accounting principles (GAAP). However, management
believes that certain non-GAAP financial measures used in managing
the business may provide users of these financial measures additional
meaningful comparisons between current results and results in prior
operating periods. Management believes that these non-GAAP financial
measures can provide additional meaningful reflection of underlying
trends of the business because they provide a comparison of
historical information that excludes certain items that impact the
overall comparability. Management also uses these non-GAAP financial
measures in making financial, operating and planning decisions and in
evaluating the Company's performance. Tables below set out
supplemental financial data and corresponding reconciliations to GAAP
financial measures for the years and three-month periods ended
December 31, 2013 and December 31, 2012. Non-GAAP financial measures
should be viewed in addition to, and not as an alternative for, the
Company's reported results prepared in accordance with GAAP. Non-GAAP
financial measures include (i) Voyage revenue adjusted on a cash
basis (reconciled above), (ii) Adjusted Net Income, (iii) Adjusted
earnings per share, (iv) EBITDA and (v) Adjusted EBITDA. 


 
                                                                            
   Reconciliation of Net Income to Adjusted Net Income available to common  
                                 stockholders                               
                                                                            
                                                   Three-month period ended 
                          Year ended December 31,        December 31,       
                          -----------------------  ------------------------ 
(Expressed in thousands                                                     
 of U.S. dollars, except                                                    
 share and per share                                                        
 data)                        2012        2013         2012         2013    
                          ----------- -----------  -----------  ----------- 
Net Income                $    81,129 $   103,087  $    22,931  $    26,852 
Distributed earnings                                                        
 allocated to Preferred                                                     
 Stock                              -      (1,536)           -         (951)
                          ----------- -----------  -----------  ----------- 
Net Income available to                                                     
 common stockholders           81,129     101,551       22,931       25,901 
                          ----------- -----------  -----------  ----------- 
Accrued charter revenue         6,261      14,976        2,352        4,303 
(Gain)/ Loss on                                                             
 sale/disposal of vessels       2,796        (518)      (1,500)           - 
Realized (Gain)/ Loss on                                                    
 Euro/USD forward                                                           
 contracts                        698        (615)        (299)           - 
(Gain)/ Loss on                                                             
 derivative instruments           462      (6,548)         141          273 
                                                                            
                          ----------- -----------  -----------  ----------- 
Adjusted Net income                                                         
 available to common                                                        
 stockholders             $    91,346 $   108,846  $    23,625  $    30,477 
                          =========== ===========  ===========  =========== 
Adjusted Earnings per                                                       
 Share                    $      1.35 $      1.46  $      0.32  $      0.41 
                          =========== ===========  ===========  =========== 
Weighted average number                                                     
 of shares                 67,612,842  74,800,000   73,658,696   74,800,000 
 
                         =========== ===========  ===========  =========== 

 
Adjusted Net income and Adjusted Earnings per Share represent net
income before non-cash "Accrued charter revenue" recorded under
charters with escalating charter rates, gain/ (loss) on sale/
disposal of vessels, realized (gain)/ loss on Euro/USD forward
contracts and non-cash changes in fair value of derivatives. "Accrued
charter revenue" is attributed to the timing difference between the
revenue recognition and the cash collection. However, Adjusted Net
income and Adjusted Earnings per Share are not recognized
measurements under U.S. generally accepted accounting principles, or
"GAAP." We believe that the presentation of Adjusted Net income and
Adjusted Earnings per Share are useful to investors because they are
frequently used by securities analysts, investors and other
interested parties in the evaluation of companies in our industry. We
also believe that Adjusted Net income and Adjusted Earnings per Share
are useful in evaluating our ability to service additional debt and
make capital expenditures. In addition, we believe that Adjusted Net
income and Adjusted Earnings per Share are useful in evaluating our
operating performance and liquidity position compared to that of
other companies in our industry because the calculation of Adjusted
Net income and Adjusted Earnings per Share generally eliminates the
effects of the accounting effects of capital expenditures and
acquisitions, certain hedging instruments and other accounting
treatments, items which may vary for different companies for reasons
unrelated to overall operating performance and liquidity. In
evaluating Adjusted Net income and Adjusted Earnings per Share, you
should be aware that in the future we may incur expenses that are the
same as or similar to some of the adjustments in this presentation.
Our presentation of Adjusted Net income and Adjusted Earnings per
Share should not be construed as an inference that our future results
will be unaffected by unusual or non-recurring items. 


 
                                                                            
               Reconciliation of Net Income to Adjusted EBITDA              
                                                                            
                                                   Three-month period ended 
                          Year ended December 31,        December 31,       
                         ------------------------  ------------------------ 
(Expressed in thousands                                                     
 of U.S. dollars)            2012         2013         2012         2013    
                         -----------  -----------  -----------  ----------- 
Net Income               $    81,129  $   103,087  $    22,931  $    26,852 
Interest and finance                                                        
 costs                        74,734       74,533       16,894       17,610 
Interest income               (1,495)        (543)        (322)         (95)
Depreciation                  80,333       89,958       20,151       24,800 
Amortization of dry-                                                        
 docking and special                                                        
 survey costs                  8,179        8,084        2,162        1,949 
                         -----------  -----------  -----------  ----------- 
EBITDA                       242,880      275,119       61,816       71,116 
Accrued charter revenue        6,261       14,976        2,352        4,303 
(Gain)/ Loss on                                                             
 sale/disposal of                                                           
 vessels                       2,796         (518)      (1,500)           - 
Realized (Gain)/ Loss on                                                    
 Euro/USD forward                                                           
 contracts                       698         (615)        (299)           - 
Gain/ (Loss) on                                                             
 derivative instruments          462       (6,548)         141          273 
                         -----------  -----------  -----------  ----------- 
Adjusted EBITDA          $   253,097  $   282,414  $    62,510  $    75,692 
                         ===========  ===========  ===========  =========== 

 
EBITDA represents net income before interest and finance costs,
interest income, depreciation and amortization of deferred
dry-docking and special survey costs. Adjusted EBITDA represents net
income before interest and finance costs, interest income,
depreciation, amortization of deferred dry-docking and special survey
costs, non-cash "Accrued charter revenue" recorded under charters
with escalating charter rates, gain/ (loss) on sale/disposal of
vessels, realized gain/ (loss) on Euro/USD forward contracts and
non-cash changes in fair value of derivatives. "Accrued charter
revenue" is attributed to the time difference between the revenue
recognition and the cash collection. However, EBITDA and Adjusted
EBITDA are not recognized measurements under U.S. generally accepted
accounting principles, or "GAAP." We believe that the presentation of
EBITDA and Adjusted EBITDA are useful to investors because they are
frequently used by securities analysts, investors and other
interested parties in the evaluation of companies in our industry. We
also believe that EBITDA and Adjusted EBITDA are useful in evaluating
our ability to service additional debt and make capital expenditures.
In addition, we believe that EBITDA and Adjusted EBITDA are useful in
evaluating our operating performance and liquidity position compared
to that of other companies in our industry because the calculation of
EBITDA and Adjusted EBITDA generally elimin
ates the effects of
financings, income taxes and the accounting effects of capital
expenditures and acquisitions, items which may vary for different
companies for reasons unrelated to overall operating performance and
liquidity. In evaluating EBITDA and Adjusted EBITDA, you should be
aware that in the future we may incur expenses that are the same as
or similar to some of the adjustments in this presentation. Our
presentation of EBITDA and Adjusted EBITDA should not be construed as
an inference that our future results will be unaffected by unusual or
non-recurring items.  
Note: Items to consider for comparability include gains and charges.
Gains positively impacting net income are reflected as deductions to
net income. Charges negatively impacting net income are reflected as
increases to net income. 
Results of Operations 
Three-month period ended December 31, 2013 compared to the
three-month period ended December 31, 2012  
During the three-month periods ended December 31, 2013 and 2012, we
had an average of 51.6 and 47.0 vessels, respectively, in our fleet.
In the three-month period ended December 31, 2013, we accepted
delivery of the newbuild vessel Vantage with a TEU capacity of 8,827.
In the three-month period ended December 31, 2012, no vessels were
acquired or sold. In the three-month periods ended December 31, 2013
and 2012, our fleet ownership days totaled 4,746 and 4,324 days,
respectively. Ownership days are the primary driver of voyage revenue
and vessels' operating expenses and represent the aggregate number of
days in a period during which each vessel in our fleet is owned.  


 
                                                                            
                                     Three-month                            
                                    period ended                            
 (Expressed in millions of U.S.     December 31,                Percentage  
                                 ------------------                         
  
dollars, except percentages)      2012      2013     Change     Change    
                                 --------  --------                         
Voyage revenue                   $   95.2  $  112.5  $   17.3         18.2% 
Voyage expenses                      (1.5)     (1.0)     (0.5)       (33.3%)
Voyage expenses - related                                                   
 parties                             (0.7)     (0.9)      0.2         28.6% 
Vessels operating expenses          (27.8)    (30.1)      2.3          8.3% 
General and administrative                                                  
 expenses                            (1.0)     (5.2)      4.2        420.0% 
Management fees - related                                                   
 parties                             (3.8)     (4.2)      0.4         10.5% 
Amortization of dry-docking and                                             
 special survey costs                (2.2)     (1.9)     (0.3)       (13.6%)
Depreciation                        (20.2)    (24.8)      4.6         22.8% 
Gain on sale / disposal of                                                  
 vessels                              1.5         -      (1.5)      (100.0%)
Foreign exchange losses              (0.1)     (0.1)        -            -  
Interest income                       0.3       0.1      (0.2)       (66.7%)
Interest and finance costs          (16.9)    (17.6)      0.7          4.1% 
Equity gain on investments              -       0.4       0.4        100.0% 
Other                                 0.2         -      (0.2)      (100.0%)
Loss on derivative instruments       (0.1)     (0.3)      0.2        200.0% 
                                 --------  --------                         
Net Income                       $   22.9  $   26.9                         
                                 ========  --------                         
                                                                            
                                                                            
                                  Three-month period                        
                                        ended                               
 (Expressed in millions of U.S.      December 31,               Percentage  
                                 -------------------                        
  dollars, except percentages)      2012      2013     Change     Change    
                                 --------- ---------                        
Voyage revenue                   $    95.2 $   112.5 $    17.3        18.2% 
Accrued charter revenue                2.4       4.3       1.9        79.2% 
                                 --------- ---------                        
Voyage revenue adjusted on a                                                
 cash basis                      $    97.6 $   116.8 $    19.2        19.7% 
                                 ========= =========                        
                                                                            
                                                                            
Fleet operational data            Three-month period                        
                                        ended                               
                                     December 31,               Percentage  
                                 -------------------                        
                                    2012      2013    Change      Change    
                                 --------- ---------                        
Average number of vessels             47.0      51.6      4.6          9.8% 
Ownership days                       4,324     4,746      422          9.8% 
Number of vessels under dry-                                                
 docking                                 3         1       (2)              

 
Voyage Revenue 
Voyage revenue increased by 18.2%, or $17.3 million, to $112.5
million during the three-month period ended December 31, 2013, from
$95.2 million during the three-month period ended December 31, 2012.
This increase was mainly due to (i) revenue earned by the newbuild
vessels delivered to us during the year ended December 31, 2013;
partly offset by (ii) decreased charter rates in certain of our
vessels during the three-month period ended December 31, 2013,
compared to the three-month period ended December 31, 2012, and (iii)
revenues not earned by vessels which were sold for scrap during the
year ended December 31, 2013. 
Voyage revenue adjusted on a cash basis (which eliminates non-cash
"Accrued charter revenue"), increased by 19.7%, or $19.2 million, to
$116.8 million during the three-month period ended December 31, 2013,
from $97.6 million during the three-month period ended December 31,
2012. This increase was mainly due to (i) revenue earned by the
newbuild vessels delivered to us during the year ended December 31,
2013; partly offset by (ii) decreased charter rates in certain of our
vessels during the three-month period ended December 31, 2013,
compared to the three-month period ended December 31, 2012, and (iii)
revenues not earned by vessels which were sold for scrap during the
year ended December 31, 2013. 
Voyage Expenses 
Voyage expenses decreased by 33.3% or $0.5 million, to $1.0 million
during the three-month period ended December 31, 2013, from $1.5
million during the three-month period ended December 31, 2012. Voyage
expenses mainly include (i) off-hire expenses of our fleet, mainly
related to fuel consumption and (ii) third party commissions. The
decrease during the three-month period ended December 31, 2013,
compared to the three-month period ended December 31, 2012, was
mainly attributable to the decreased off-hire expenses, mainly
relating to bunkers consumption.  
Voyage Expenses - related parties 
Voyage expenses - related parties in the amount of $0.9 million
during the thr
ee-month period ended December 31, 2013 and in the
amount of $0.7 million during the three-month period ended December
31, 2012, represent fees of 0.75% on voyage revenues charged to us by
Costamare Shipping Company S.A. as provided under our group
management agreement.  
Vessels' Operating Expenses 
Vessels' operating expenses, which also include the realized gain/
(loss) under derivative contracts entered into in relation to foreign
currency exposure, increased by 8.3%, or $2.3 million, to $30.1
million during the three-month period ended December 31, 2013, from
$27.8 million during the three-month period ended December 31, 2012.
The increase was partly attributable to the increased ownership days
of our fleet during the three-month period ended December 31, 2013
compared to the three-month period ended December 31, 2012. 
General and Administrative Expenses 
General and administrative expenses increased by $4.2 million, to
$5.2 million during the three-month period ended December 31, 2013,
from $1.0 million during the three-month period ended December 31,
2012. General and administrative expenses for the three-month periods
ended December 31, 2013 and 2012, included $0.25 million in each
period for the services of the Company's officers in aggregate
charged to us by Costamare Shipping Company S.A. as provided under
our group management agreement.  
Management Fees - related parties 
Management fees paid to our managers increased by 10.5%, or $0.4
million, to $4.2 million during the three-month period ended December
31, 2013, from $3.8 million during the three-month period ended
December 31, 2012. The increase was primarily attributable to (i) the
inflation related upward adjustment by 4% of the management fee for
each vessel (effective January 1, 2013), as provided under our group
management agreement and (ii) the increased average number of vessels
during the three-month period ended December 31, 2013, compared to
the three-month period ended December 31, 2012. 
Amortiz
ation of Dry-docking and Special Survey Costs  
Amortization of deferred dry-docking and special survey costs was
$1.9 million for the three-month period ended December 31, 2013 and
$2.2 million for the three-month period ended December 31, 2012.
During the three-month periods ended December 31, 2013 and 2012, one
vessel and three vessels, respectively, underwent and completed their
special survey.  
Depreciation  
Depreciation expense increased by 22.8%, or $4.6 million, to $24.8
million during the three-month period ended December 31, 2013, from
$20.2 million during the three-month period ended December 31, 2012.
The increase was mainly attributable to the depreciation expense
charged for the seven newbuilding vessels delivered to us during the
year ended December 31, 2013, partly offset by the depreciation
expense not charged for the vessels sold for scrap during the year
ended December 31, 2013.  
Gain on Sale/Disposal of Vessels 
During the three-month period ended December 31, 2013, no vessels
were sold. During the three-month period ended December 31, 2012, we
recorded a book gain of $1.5 million from the effect of the partial
reversal of a provision recorded in 2011 for costs associated with
the grounding of the vessel Rena. 
Foreign Exchange Losses 
Foreign exchange losses were $0.1 million during the three-month
period ended December 31, 2013 and $0.1 million during the
three-month period ended December 31, 2012. 
Interest Income 
Interest income decreased by 66.7% or $0.2 million, to $0.1 million
during the three-month period ended December 31, 2013, from $0.3
million during the three-month period ended December 31, 2012. The
decrease was mainly attributable to the decreased average cash
balance during the three-month period ended December 31, 2013,
compared to the three-month period ended December 31, 2012. 
Interest and Finance Costs  
Interest and finance costs increased by 4.1%, or $0.7 million, to
$17.6 million during the three-month period ended December 31, 2013,
from $16.9 million during the three-month period ended December 31,
2012. The increase was mainly attributable to the increased interest
expense charged to the consolidated income statement in relation with
the loan facilities of the seven newbuild vessels which were
delivered to us during the year ended December 31, 2013; partly
offset by the decreased loan commitment fees charged to us during the
three-month period ended December 31, 2013, compared to the
three-month period ended December 31, 2012. 
Equity Gain on Investments 
The equity gain on investments of $0.4 million for the three month
period ended December 31, 2013, represents our share of the net
earnings of thirteen jointly owned companies pursuant to the
Framework Agreement with York. We hold a range of 25% to 49% of the
capital stock of these companies. 
Loss on Derivative Instruments 
The fair value of our 27 interest rate derivative instruments which
were outstanding as of December 31, 2013, equates to the amount that
would be paid by us or to us should those instruments be terminated.
As of December 31, 2013, the fair value of these 27 interest rate
derivative instruments in aggregate amounted to a liability of $103.2
million. Twenty-six of the 27 interest rate derivative instruments
that were outstanding as at December 31, 2013, qualified for hedge
accounting and the effective portion of the change in their fair
value is recorded in "Other Comprehensive Income" ("OCI")". For the
three-month period ended December 31, 2013, a net gain of $12.0
million has been included in "OCI" and a net loss of $0.3 million has
been included in "Gain/ (Loss) on derivative instruments" in the
consolidated statement of income, resulting from the fair market
value change of the interest rate derivative instruments during the
three-month period ended December 31, 2013.  
Cash Flows 
Three-month periods ended December 31, 2013 and 2012 


 
                                                                            
Condensed cash flows                               Three-month period ended 
                                                         December 31,       
                                                   ------------------------ 
(Expressed in millions of U.S. dollars)                2012         2013    
                                                   -----------  ----------- 
Net Cash Provided by Operating Activities          $      44.7  $      57.8 
Net Cash Used in Investing Activities              $     (74.5) $    (107.9)
Net Cash Provided by Financing Activities          $      80.0  $      23.1 

 
Net Cash Provided by Operating Activities  
Net cash flows provided by operating activities for the three-month
period ended December 31, 2013, increased by $13.1 million to $57.8
million, compared to $44.7 million for the three-month period ended
December 31, 2012. The increase was primarily attributable to
increased cash from operations of $19.3 million due to cash generated
from the chartering of the seven newbuild vessels delivered to us
during the year ended December 31, 2013 and to decreased dry-docking
payments of $2.3 million, partly offset by unfavorable change in
working capital position, excluding the current portion of long-term
debt and the accrued charter revenue (representing the difference
between cash received in that period and revenue recognized on a
straight-line basis) of $5.1 million. 
Net Cash Used in Investing Activities 
Net cash used in investing activities was $107.9 million in the
three-month period ended December 31, 2013, which primarily consisted
of $108.1 million advance payments for the construction and purchase
of three newbuild vessels. 
Net cash used in investing activities was $74.5 million in the
three-month period ended December 31, 2012, which mainly consisted of
(a) $82.1 million advance payments for the construction and purchase
of five newbuild vessels and (b) $7.9 million advance payment we
received from the sale of one vessel for scrap which was delivered to
her scrap buyers in January 2013. 
Net Cash Provided By Financing Activities 
Net cash provided by financing activities was $23.1 million in the
three-month period ended December 31, 2013, which mainly consisted of
(a) $43.2 million of indebtedness that we repaid, (b) $91.5 million
we drew down from two of our credit facilities (c) $20.2 million we
paid for dividends to our stockholders for the third quarter of 2013
and (d) $0.7 million we paid for dividends to holders of our 7.625%
Series B Cumulative Redeemable Perpetual Preferred Shares for the
period from August 6, 2013 to October 14, 2014. 
Net cash provided by financing activities was $80.0 million in the
three-month period ended December 31, 2012, which mainly consisted of
(a) $40.8 million of indebtedness that we repaid, (b) $47.5 million
we drew down from three of our credit facilities, (c) $20.2 million
we paid for dividends to our stockholders for the third quarter of
the year 2012 and (d) $93.5 million net proceeds we received from our
follow-on offering in October 2012, net of underwriting discounts and
expenses incurred in the offering. 
Results of Operations 
Year ended December 31, 2013 compared to the year ended December 31,
2012 
During the year ended December 31, 2013 and 2012, we had an average
of 49.6 and 46.8 vessels, respectively, in our fleet. In the year
ended December 31, 2013, we accepted delivery of the newbuild vessels
MSC Athens, MSC Athos, Valor, Value, Valiant, Valence and Vantage
with an aggregate TEU capacity of 61,789TEU and the secondhand vessel
Venetiko with a TEU capacity of 5,928 and we sold three vessels, the
MSC Washington, MSC Austria and MSC Antwerp with an aggregate TEU
capacity of 11,343. In the year ended December 31, 2012, we accepted
delivery of five secondhand vessels MSC Ulsan, Koroni, Kyparissia,
Stadt Luebeck and Messini with an aggregate TEU capacity of 15,352
and we sold four vessels Gather, Gifted, Genius I and Horizon with an
aggregate TEU capacity of 9,834. In the years ended December 31, 2013
and 2012, our fleet ownership days totaled 18,119 and 17,113 days,
respectively. Ownership days are the primary driver of voyage revenue
and vessels operating expenses and represent the aggregate number of
days in a period during which each vessel in our fleet is owned. 


 
                                                                            
                                    Year ended                              
(Expressed in millions of U.S.     December 31,                 Percentage  
                               --------------------                         
 dollars, except percentages)     2012       2013      Change     Change    
                               ---------  ---------                         
                                                                            
Voyage revenue                 $   386.2      414.2
  $    28.0         7.3% 
Voyage expenses                     (5.5)      (3.5)      (2.0)      (36.4%)
Voyage expenses - related                                                   
 parties                            (2.9)      (3.1)       0.2         6.9% 
Vessels operating expenses        (112.5)    (116.0)       3.5         3.1% 
General and administrative                                                  
 expenses                           (4.0)      (8.5)       4.5       112.5% 
Management fees - related                                                   
 parties                           (15.2)     (16.6)       1.4         9.2% 
Amortization of dry-docking                                                 
 and special survey costs           (8.2)      (8.1)      (0.1)       (1.2%)
Depreciation                       (80.3)     (89.9)       9.6        12.0% 
Gain/ (Loss) on sale/disposal                                               
 of vessels                         (2.8)       0.5        3.3       117.9% 
Foreign exchange gains               0.1          -       (0.1)     (100.0%)
Interest income                      1.5        0.6       (0.9)      (60.0%)
Interest and finance costs         (74.7)     (74.5)      (0.2)       (0.3%)
Equity gain on investments             -        0.7        0.7       100.0% 
Other                               (0.1)       0.8        0.9       900.0% 
Gain/ (Loss) on derivative                                                  
 instruments                        (0.5)       6.5        7.0     1,400.0% 
                               ---------  ---------                         
Net Income                     $    81.1  $   103.1                         
                               =========  =========                         
                                                                            
                                                                            
(Expressed in millions of U.S.       Year ended                             
 dollars, except percentages)       December 31,                Percentage  
                                -------------------                         
                                  2012       2013      Change     Change    
                               ---------  ---------                         
Voyage revenue                 $   386.2  $   414.2  $    28.0         7.3% 
Accrued charter revenue              6.2       15.0        8.8       141.9% 
                               ---------  ---------                         
Voyage revenue adjusted on a                                                
 cash basis                    $   392.4  $   429.2  $    36.8         9.4% 
                               =========  =========                         
                                                                            
                                                                            
                                     Year ended                             
                                    December 31,                Percentage  
                                -------------------                         
Fleet operational data             2012      2013     Change      Change    
                                --------- ---------                         
Average number of vessels            46.8      49.6       2.8          6.0% 
Ownership days                     17,113    18,119     1,006          5.9% 
Number of vessels under dry-                                                
 docking                                9         8        (1)              

 
Voyage Revenue 
Voyage revenue increased by 7.3%, or $28.0 million, to $414.2 million
during the year ended December 31, 2013, from $386.2 million during
the year ended December 31, 2012. This increase was mainly
attributable to (i) revenue earned by the newbuild vessels delivered
to us during the year ended Dec
ember 31, 2013; partly offset by (ii)
decreased charter rates in certain of our vessels during the year
ended December 31, 2013, compared to the year ended December 31,
2012, and (iii) revenues not earned by vessels which were sold for
scrap during the years ended December 31, 2013 and 2012. 
Voyage revenue adjusted on a cash basis (which eliminates non-cash
"Accrued charter revenue"), increased by 9.4%, or $36.8 million, to
$429.2 million during the year ended December 31, 2013, from $392.4
million during the year ended December 31, 2012. This increase was
mainly attributable to (i) revenue earned by the newbuild vessels
delivered to us during the year ended December 31, 2013; partly
offset by (ii) decreased charter rates in certain of our vessels
during the year ended December 31, 2013, compared to the year ended
December 31, 2012, and (iii) revenues not earned by vessels which
were sold for scrap during the years ended December 31, 2013 and
2012. 
Voyage Expenses 
Voyage expenses decreased by 36.4%, or $2.0 million, to $3.5 million
during the year ended December 31, 2013, from $5.5 million during the
year ended December 31, 2012. The decrease was primarily attributable
to the decreased off-hire expenses of our fleet, mainly bunkers
consumption and by the decreased third party commissions charged to
us during the year ended December 31, 2013, compared to the year
ended December 31, 2012. 
Voyage Expenses - related parties 
Voyage expenses - related parties increased by 6.9% or $0.2 million
to $3.1 million during the year ended December 31, 2013, from $2.9
million during the year ended December 31, 2012 and represent fees of
0.75% on voyage revenues charged to us by Costamare Shipping Company
S.A. as provided under our group management agreement. 
Vessels' Operating Expenses 
Vessels' operating expenses, which also includes the realized gain/
(loss) under derivative contracts entered into in relation to foreign
currency exposure, increased by 3.1% or $3.5 million to $116.0
million during the year ended December 31, 2013, from $112.5 million
during the year ended December 31, 2012. The increase was mainly
attributable to the increased ownership days of our fleet during the
year ended December 31, 2013 compared to the year ended December 31,
2012. 
General and Administrative Expenses 
General and administrative expenses increased by $4.5 million, to
$8.5 million during the year ended December 31, 2013, from $4.0
million during the year ended December 31, 2012. Furthermore, General
and administrative expenses for the years ended December 31, 2013 and
December 31, 2012, include $1.0 million in each period for the
services of the Company's officers in aggregate charged to us by
Costamare Shipping Company S.A. as provided under our group
management agreement.  
Management Fees - related parties 
Management fees paid to our managers increased by 9.2%, or $1.4
million, to $16.6 million during the year ended December 31, 2013,
from $15.2 million during the year ended December 31, 2012. The
increase was primarily attributable to (i) the inflation related
upward adjustment by 4% of the management fee for each vessel
(effective January 1, 2013), as provided under our group management
agreement and (ii) the increased average number of vessels during the
year ended December 31, 2013, compared to the year ended December 31,
2012.  
Amortization of Dry-docking and Special Survey Costs 
Amortization of deferred dry-docking and special survey costs for the
years ended December 31, 2013 and 2012 was $8.1 million and $8.2
million, respectively. During the years ended December 31, 2013 and
2012, eight vessels and nine vessels, respectively, underwent their
special survey. 
Depreciation 
Depreciation expense increased by 12.0%, or $9.6 million, to $89.9
million during the year ended December 31, 2013, from $80.3 million
during the year ended December 31, 2012. The increase was primarily
attributable to the depreciation expense charged for the seven
newbuild v
essels delivered to us during the year ended December 31,
2013. 
Gain/ (Loss) on Sale/Disposal of Vessels 
During the year ended December 31, 2013, we recorded a net gain of
$0.5 million from the sale of three vessels. During the year ended
December 31, 2012, we recorded a net loss of $2.8 million mainly from
the sale of four vessels (including the effect of the partial
reversal of a provision recorded in 2011 for costs associated with
the grounding of the vessel Rena). 
Foreign Exchange Gains 
Foreign exchange gains amounted to nil and $0.1 million during the
years ended December 31, 2013 and 2012, respectively. 
Interest Income 
During the year ended December 31, 2013, interest income decreased by
60.0%, or $0.9 million, to $0.6 million from $1.5 million during the
year ended December 31, 2012.  
Interest and Finance Costs 
Interest and finance costs decreased by 0.3%, or $0.2 million, to
$74.5 million during the year ended December 31, 2013, from $74.7
million during the year ended December 31, 2012. The decrease was
mainly attributable to (i) the capitalized interest in relation with
our newbuilding program, (ii) the decreased commitment fees charged
to us; partly offset by the increased interest expense charged to our
consolidated income statement in relation with the loan facilities of
the seven newbuild vessels which were delivered to us during the year
ended December 31, 2013. 
Equity Gain on Investments 
The equity gain on investments of $0.7 million represents our share
of the net earnings of thirteen jointly owned companies formed
pursuant to the Framework Agreement with York. We hold a range of 25%
to 49% of the capital stock of each company. 
Gain/ (Loss) on Derivative Instruments 
The fair value of our 27 interest rate derivative instruments which
were outstanding as of December 31, 2013, equates to the amount that
would be paid by us or to us should those instruments be terminated.
As of December 31, 2013, the fair value of these 27 interest rate
derivative instruments in aggregate amounted to a liability of $103.2
million. Twenty-six of the 27 interest rate derivative instruments
that were outstanding as at December 31, 2013, qualified for hedge
accounting and the effective portion of the change in their fair
value is recorded in "Other Comprehensive Income" ("OCI"). For the
year ended December 31, 2013, a gain of $71.1 million has been
included in "OCI" and a net gain of $6.5 million has been included in
"Gain/ (Loss) on derivative instruments" in the consolidated
statement of income, resulting from the fair market value change of
the interest rate derivative instruments during the year ended
December 31, 2013.  


 
                                                                            
Cash Flows                                                                  
Year ended December 31, 2013 and 2012                                       
                                                                            
                                                                            
Condensed cash flows                              Year ended December 31,   
                                               ---------------------------- 
(Expressed in millions of U.S. dollars)             2012           2013     
                                               -------------  ------------- 
Net Cash Provided by Operating Activities      $       168.1  $       186.7 
Net Cash Used in Investing Activities          $      (236.5) $      (621.1)
Net Cash Provided by Financing Activities      $       237.7          260.4 

 
Net Cash Provided by Operating Activities 
Net cash flows provided by operating activities for the year ended
December 31, 2013, increased by $18.6 million to $186.7 million,
compared to $168.1 million for the year ended December 31, 2012. The
increase was primarily attributable to increased cash from operations
of $36.8 million due to cash generated from the charters of the seven
newbuild vessels delivered to us during the year ended December 31,
2013 and to decreased dry-docking payments of $5.0 million, partly
offset by unfavorable change in working capital position, excluding
the current portion of long-term debt and the accrued charter revenue
(representing the difference between cash received in that period and
revenue recognized on a straight-line basis) of $20.1 million and
increased payments for interest (including swap payments) of $2.7
million. 
Net Cash Used in Investing Activities 
Net cash used in investing activities was $621.1 million in the year
ended December 31, 2013, which consisted primarily of (a) $590.4
million advance payments for the construction and purchase of ten
newbuild vessels, (b) $51.9 million in payments for the acquisition
of four secondhand vessels, (c) $8.7 million in payments, pursuant to
the Framework Agreement with York, to hold a minority equity interest
in jointly-owned companies, (d) $13.9 million net proceeds we
received from the sale for scrap of MSC Antwerp and MSC Austria
(including $0.6 million in payments for expenses related to the sale
of MSC Washington) and (e) $16.0 million we received, pursuant to the
Framework Agreement with York, for York's 51% equity interest in the
ship-owning companies of the vessels Petalidi, Ensenada Express and
X-Press Padma and for initial working capital for such ship-owning
companies. 
Net cash used in investing activities was $236.5 million in the year
ended December 31, 2012, which consisted of (a) $191.2 million
advance payments for the construction and purchase of ten newbuild
vessels, (b) $74.1 million in payments for the acquisition of five
secondhand vessels and (c) $28.7 million we received from the sale of
four vessels, including the advance payment we received from the sale
of one vessel for scrap which was delivered to her scrap buyers in
January 2013. 
Net Cash Provided By Financing Activities 
Net cash provided by financing activities was $260.4 million in the
year ended December 31, 2013, which mainly consisted of (a) $163.7
million of indebtedness that we repaid, (b) $469.4 million we drew
down from four of our credit facilities, (c) $80.8 million we paid
for dividends to our stockholders for the fourth quarter of the year
ended December 31, 2012, and the first, second and third quarters of
2013, (d) $48.0 million net proceeds we received from our public
offering in August 2013 of 2.0 million shares of our 7.625% Series B
Cumulative Redeemable Perpetual Preferred Shares, net of underwriting
discounts and expenses incurred in the offering and (e) $0.7 million
we paid for dividends to holders of our 7.625% Series B Cumulative
Redeemable Perpetual Preferred Shares for the period from August 6,
2013 to October 14, 2013. 
Net cash provided by financing activities was $237.7 million in the
year ended December 31, 2012, which mainly consisted of (a) $170.2
million of indebtedness that we repaid, (b) $288.6 million we drew
down from six of our credit facilities, (c) $73.1 million we paid for
dividends to our stockholders for the fourth quarter of the year
ended December 31, 2011, first quarter of the year 2012, the second
quarter of the year 2012 and the third quarter of the year 2012 and
(d) $194.1 million net proceeds we received from our two follow-on
offerings in March 2012 and October 2012, net of underwriting
discounts and expenses incurred in the offerings. 
Liquidity and Capital Expenditures 
Cash and cash equivalents 
As of December 31, 2013, we had a total cash liquidity of $152.3
million, consisting of cash, cash equivalents and restricted cash. 
Debt-free vessels 
As of January 27, 2014, the following vessels were free of debt.  


 
                                                               
                                                               
              Unencumbered Vessels in the water(*)             
   (refer to fleet list on page 17 for full charter details)   
                                                               
                                            Year        TEU    
Vessel Name                                Built      Capacity 
                                        ----------- -----------
NAVARINO                                    2010       8,531   
VENETIKO                                    2003       5,928   
MESSINI                                     1997       2,458   

 
(*) Does not include three secondhand vessels acquired and nine
newbuild vessels ordered pursuant to the Framework Agreement with
York, which are also free of debt.  
Capital commitments 
As of January 27, 2014, we had outstanding commitments relating to
our contracted newbuilds, including the JV newbuilds, aggregating
approximately $382.6 million payable in installments until the
vessels are deliv
ered, which amount includes our interest in the
relevant vessel-owning entities.  
Conference Call details: 
On Tuesday, January 28, 2014 at 8:30 a.m., ET, Costamare's management
team will hold a conference call to discuss the financial results. 
Participants should dial into the call 10 minutes before the
scheduled time using the following numbers: 1-866-524-3160 (from the
US), 0808 238 9064 (from the UK) or +1-412-317-6760 (from outside the
US). Please quote "Costamare". 
A replay of the conference call will be available until February 28,
2014. The United States replay number is +1-877-344-7529; the
standard international replay number is +1-412-317-0088, and the
access code required for the replay is: 10039870. 
Live webcast: 
There will also be a simultaneous live webcast over the Internet,
through the Costamare Inc. website (www.costamare.com) under the
"Investors" section. Participants to the live webcast should register
on the website approximately 10 minutes prior to the start of the
webcast. 
About Costamare Inc. 
Costamare Inc. is one of the world's leading owners and providers of
containerships for charter. The Company has 40 years of history in
the international shipping industry and a fleet of 67 containerships,
with a total capacity in excess of 438,000 TEU, including 11 newbuild
containerships on order. Twelve of our containerships, including nine
newbuilds, have been acquired pursuant to the Framework Agreement
with York Capital Management by vessel-owning joint venture entities
in which we hold a minority equity interest. The Company's common
stock, Series B Preferred Stock and Series C Preferred Stock trade on
the New York Stock Exchange under the symbols "CMRE", "CMRE PR B" and
"CMRE PR C", respectively. 
Forward-Looking Statements 
This earnings release contains "forward-looking statements". In some
cases, you can identify these statements by forward-looking words
such as "believe", "intend", "anticipate", "estimate", "project",
"forecast", "plan", "potential", "may", "should", "could" and
"expect" and similar expressions. These statements are not historical
facts but instead represent only Costamare's belief regarding future
results, many of which, by their nature, are inherently uncertain and
outside of Costamare's control. It is possible that actual results
may differ, possibly materially, from those anticipated in these
forward-looking statements. For a discussion of some of the risks and
important factors that could affect future results, see the
discussion in Costamare Inc.'s Annual Report on Form 20-F (File No.
001-34934) under the caption "Risk Factors".  
Fleet List 
The tables below provide additional information, as of January 27,
2014, about our fleet of containerships, including our newbuilds on
order and the vessels acquired pursuant to the Framework Agreement
with York. Each vessel is a cellular containership, meaning it is a
dedicated container vessel. 


 
                                                                            
                                                                            
----------------------------------------------------------------------------
                                                                     Average
                                                                      Daily 
                                                                     Charter
                                                 Current              Rate  
                                                  Daily               Until 
   Vessel                 Year Capacity   Time   Charter Expiration Earliest
   Name       Charterer  Built   (TEU)  Charter   Rate       of      Expiry 
                                        Term(1)   (U.S.  Charter(1)    of   
                                                dollars)             Charter
                                                                      (U.S. 
                                                                    d
ollars)
                                                                       (2)  
----------------------------------------------------------------------------
1  COSCO                                   12             December          
   GUANGZHOU  COSCO       2006   9,469   years   36,400     2017     36,400 
----------------------------------------------------------------------------
2  COSCO                                   12              January          
   NINGBO     COSCO       2006   9,469   years   36,400     2018     36,400 
----------------------------------------------------------------------------
3  COSCO                                   12             February          
   YANTIAN    COSCO       2006   9,469   years   36,400     2018     36,400 
----------------------------------------------------------------------------
4  COSCO                                   12                               
   BEIJING    COSCO       2006   9,469   years   36,400  April 2018  36,400 
----------------------------------------------------------------------------
5  COSCO                                   12                               
   HELLAS     COSCO       2006   9,469   years   37,519   May 2018   37,519 
----------------------------------------------------------------------------
6                                          10             November          
   MSC AZOV   MSC         2014   9,403   years   43,000     2023     43,000 
----------------------------------------------------------------------------
7                                          10              January          
   MSC ATHENS MSC         2013   8,827   years   42,000     2023     42,000 
----------------------------------------------------------------------------
8                                          10             February          
   MSC ATHOS  MSC         2013   8,827   years   42,000     2023     42,000 
----------------------------------------------------------------------------
9                                       7 years             April           
   VALOR      Evergreen   2013   8,827    (i)    41,700    2020(i)   41,700 
----------------------------------------------------------------------------
10                                      7 years             April           
   VALUE      Evergreen   2013   8,827    (i)    41,700    2020(i)   41,700 
----------------------------------------------------------------------------
11                                      7 years             June            
   VALIANT    Evergreen   2013   8,827    (i)    41,700    2020(i)   41,700 
----------------------------------------------------------------------------
12                                      7 years             July            
   VALENCE    Evergreen   2013   8,827    (i)    41,700    2020(i)   41,700 
----------------------------------------------------------------------------
13                                      7 years           September         
   VANTAGE    Evergreen   2013   8,827    (i)    41,700    2020(i)   41,700 
----------------------------------------------------------------------------
14 NAVARINO                               1.0             February          
   (ii)       MSC         2010   8,531    year              2015            
----------------------------------------------------------------------------
15 MAERSK     A.P.                                                          
   KAWASAKI   Moller-                      10             December          
   (iii)      Maersk      1997   7,403   years   37,000     2017     37,000 
----------------------------------------------------------------------------
16            A.P.                                                          
   MAERSK     Moller-                      10             December          
   KURE(iii)  Maersk      1996   7,403   years   37,000     2017     37,000 
----------------------------------------------------------------------------
17 MAERSK     A.P.                                                          
   KOKURA     Moller-                      10             February          
   (iii)      Maersk      1997   7,403   years   37,000     2018     37,000 
----------------------------------------------------------------------------
18 MSC                                     10             September         
   METHONI    MSC         2003   6,724   years   29,000     2021     29,000 
----------------------------------------------------------------------------
19            A.P.                                                          
   SEALAND    Moller-                      11    30,375                     
   NEW YORK   Maersk      2000   6,648   years     (3)   March 2018  26,387 
----------------------------------------------------------------------------
20            A.P.                                                          
   MAERSK     Moller-                      11    38,179                     
   KOBE       Maersk      2000   6,648   
years     (4)    May 2018   27,296 
----------------------------------------------------------------------------
21            A.P.                                                          
   SEALAND    Moller-                      11    30,375                     
   WASHINGTON Maersk      2000   6,648   years     (5)    June 2018  26,655 
----------------------------------------------------------------------------
22            A.P.                                                          
   SEALAND    Moller-                      11    25,375    August           
   MICHIGAN   Maersk      2000   6,648   years     (6)      2018     25,984 
----------------------------------------------------------------------------
23            A.P.                                                          
   SEALAND    Moller-                      11    30,375    October          
   ILLINOIS   Maersk      2000   6,648   years     (7)      2018     26,877 
----------------------------------------------------------------------------
24            A.P.                                                          
   MAERSK     Moller-                      11    38,865   November          
   KOLKATA    Maersk      2003   6,644   years     (8)      2019     30,290 
----------------------------------------------------------------------------
25            A.P.                                                          
   MAERSK     Moller-                      11    38,461   February          
   KINGSTON   Maersk      2003   6,644   years     (9)      2020     30,671 
----------------------------------------------------------------------------
26            A.P.                                                          
   MAERSK     Moller-                      11    38,418                     
   KALAMATA   Maersk      2003   6,644   years    (10)   April 2020  30,806 
----------------------------------------------------------------------------
27 VENETIKO                               1.0                               
   (iv)       PIL         2003   5,928    year   14,500  March 2014  14,500 
----------------------------------------------------------------------------
28 ENSENADA   Hapag                       2.0                               
   EXPRESS(*) Lloyd       2001   5,576   years   19,000   May 2015   19,000 
----------------------------------------------------------------------------
29 MSC                                    5.3             November          
   ROMANOS    MSC         2003   5,050   years   28,000     2016     28,000 
----------------------------------------------------------------------------
30 ZIM NEW                                 13    23,150   September  23,150 
   YORK       ZIM(**)     2002   4,992   years    (11)      2015      (11)  
----------------------------------------------------------------------------
31 ZIM                                     13    23,150   September  23,150 
   SHANGHAI   ZIM(**)     2002   4,992   years    (11)      2015      (11)  
----------------------------------------------------------------------------
32 ZIM                                     10    22,150   September  24,844 
   PIRAEUS(v) ZIM(**)     2004   4,992   years    (12)      2015      (12)  
----------------------------------------------------------------------------
33 OAKLAND    Hapag                                       September         
   EXPRESS    Lloyd       2000   4,890  8 years  30,500     2016     30,500 
----------------------------------------------------------------------------
34 HALIFAX    Hapag                                        October          
   EXPRESS    Lloyd       2000   4,890  8 years  30,500     2016     30,500 
----------------------------------------------------------------------------
35 SINGAPORE  Hapag                                                         
   EXPRESS    Lloyd       2000   4,890  8 years  30,500   July 2016  30,500 
----------------------------------------------------------------------------
36 
MSC                                    7.8              August           
   MANDRAKI   MSC         1988   4,828   years   20,000     2017     20,000 
----------------------------------------------------------------------------
37 MSC                                    8.2             September         
   MYKONOS    MSC         1988   4,828   years   20,000     2017     20,000 
----------------------------------------------------------------------------
38                                        5.3                               
   MSC ULSAN  MSC         2002   4,132   years   16,500  March 2017  16,500 
----------------------------------------------------------------------------
39                                        9.5    13,500   September         
   MSC KYOTO  MSC         1981   3,876   years    (13)      2018     13,500 
----------------------------------------------------------------------------
40 KORONI     Evergreen   1998   3,842  2 years  11,500  April 2014  11,500 
----------------------------------------------------------------------------
41 KYPARISSIA Evergreen   1998   3,842  2 years  11,500   May 2014   11,500 
----------------------------------------------------------------------------
42            Sea                         1.7              January          
   KARMEN     Consortium  1991   3,351   years    6,800     2014      6,800 
----------------------------------------------------------------------------
43                                        1.8             February          
   MARINA     Evergreen   1992   3,351   years    7,000     2014      7,000 
----------------------------------------------------------------------------
44 KONSTANTIN                                                               
   A                      1992   3,351                                      
----------------------------------------------------------------------------
45            Hapag                                        August           
   AKRITAS    Lloyd       1987   3,152  4 years  12,500     2014     12,500 
----------------------------------------------------------------------------
46 MSC                                    4.8                               
   CHALLENGER MSC         1986   2,633   years   10,000   July 2015  10,000 
----------------------------------------------------------------------------
47                                        1.5             February          
   MESSINI    Evergreen   1997   2,458   years    8,100     2014      8,100 
----------------------------------------------------------------------------
48 MSC                                                                      
   REUNION    MSC                                                           
   (vi)                   1992   2,024  6 years  11,500   June 2014  11,500 
----------------------------------------------------------------------------
49 MSC                                                                      
   NAMIBIA    MSC                         6.8                               
   II(vi)                 1991   2,023   years   11,500   July 2014  11,500 
----------------------------------------------------------------------------
50 MSC SIERRA                             5.7                               
   II(vi)     MSC         1991   2,023   years   11,500   June 2014  11,500 
----------------------------------------------------------------------------
51 MSC                                                     January          
   PYLOS(vi)  MSC         1991   2,020  3 years  11,500     2014     11,500 
----------------------------------------------------------------------------
52 X-PRESS    Sea                         2.0     7,650                     
   PADMA(*)   Consortium  1998   1,645   years    (14)    June 2015   8,023 
----------------------------------------------------------------------------
53                                        1.0                               
   PROSPER    COSCO       1996   1,504    y
ear    7,350  March 2014   7,350 
----------------------------------------------------------------------------
54                                        3.7                               
   ZAGORA     MSC         1995   1,162   years    5,700  April 2015   5,700 
----------------------------------------------------------------------------
55 PETALIDI                               1.0                               
   (*)        CMA CGM     1994   1,162   years    6,300   June 2014   6,300 
----------------------------------------------------------------------------
56 STADT                                  1.7     6,400                     
   LUEBECK    CMA CGM     2001   1.078   years    (15)    July 2014   6,400 
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
                                                                            
Newbuilds                                                                   
                                                                            
----------------------------------------------------------------------------
                                                       Expected Delivery    
   Vessel Name Shipyard                 Charterer  (based on latest shipyard
                                                           schedule)        
----------------------------------------------------------------------------
1  H1069A      Jiangnan Changxing          MSC             March 2014       
----------------------------------------------------------------------------
2  H1070A      Jiangnan Changxing          MSC             April 2014       
----------------------------------------------------------------------------
3  NCP0113(*)  Hanjin Subic Bay                         4th Quarter 2015    
----------------------------------------------------------------------------
4  NCP0114(*)  Hanjin Subic Bay                         1st Quarter 2016    
----------------------------------------------------------------------------
5  NCP0115(*)  Hanjin Subic Bay                         1st Quarter 2016    
----------------------------------------------------------------------------
6  NCP0116(*)  Hanjin Subic Bay                         2nd Quarter 2016    
----------------------------------------------------------------------------
7  S2121(*)    Samsung Heavy            Evergreen       2nd Quarter 2016    
----------------------------------------------------------------------------
8  S2122(*)    Samsung Heavy            Evergreen       2nd Quarter 2016    
----------------------------------------------------------------------------
9  S2123(*)    Samsung Heavy            Evergreen       3rd Quarter 2016    
----------------------------------------------------------------------------
10 S2124(*)    Samsung Heavy            Evergreen       3rd Quarter 2016    
----------------------------------------------------------------------------
11 S2125(*)    Samsung Heavy            Evergreen       3rd Quarter 2016    
----------------------------------------------------------------------------

 
Our newbuilds on order have capacities ranging from approximately
9,000 to 14,000 TEU, with an aggregate capacity in excess of 125,000
TEU. 


 
                                                                            
(1)   Charter terms and expiration dates are based on the earliest date     
      charters could expire. Amounts set out for current daily charter rate 
      are the amounts contained in the charter contracts.                   
(2)   This average rate is calculated based on contracted charter rates for 
      the days remaining between January 27, 2014 and the earliest          
      expiration of each charter. Certain of our charter rates change until 
      their earliest expiration dates, as indicated in the footnotes below. 
(3)   This charter rate changes on May 8, 2014 to $26,100 per day until the 
      earliest redelivery date.                                             
(4)   This charter rate changes on June 30, 2014 to $26,100 per day until   
      the earliest redelivery date.                                         
(5)   This charter rate changes on August 24, 2014 to $26,100 per day until 
      the earliest redelivery date.                                         
(6)   This charter rate changes on October 20, 2014 to $26,100 per day until
      the earliest redelivery date.                                         
(7)   This charter rate changes on December 4, 2014 to $26,100 per day until
      the earliest redelivery date.                                         
(8)   This charter rate changes on January 13, 2016 to $26,100 per day until
      the earliest redelivery date.                                         
(9)   This charter rate changes on April 28, 2016 to $26,100 per day until  
      the earliest redelivery date.                                         
(10)  This charter rate changes on June 11, 2016 to $26,100 per day until   
      the earliest redelivery date.                                         
(11)  We agreed to defer payment of 30% of the daily charter rate under our 
      charter agreements until December 31, 2013, which the charterer is    
      required to pay to us no later than July 2015. The charterer has the  
      option to terminate the charter by giving six months' notice, in which
      case they will have to make a one-time payment which shall be the $6.9
      million reduced proportionately by the amount of time by which the    
      original 3-year extension period is shortened. Although this deferral 
      agreement expired 
as of December 31, 2013, we have continued          
      negotiations with the charterer regarding a restructuring of the      
      charter. See footnote (**) below.                                     
(12)  This charter rate changes on May 9, 2014 to $15,000 per day until the 
      earliest redelivery date. We agreed to defer payment of 17.5% of the  
      daily charter rate under our charter agreements until December 31,    
      2013, which the charterer is required to pay to us no later than July 
      2015. The charterer is required to pay approximately $5.0 million no  
      later than July 2016, representing accrued charter hire, the payment  
      of which was deferred during the period July 2009 to December 2012.   
      Although this deferral agreement expired as of December 31, 2013, we  
      have continued negotiations with the charterer regarding a            
      restructuring of the charter. See footnote (**) below.                
(13)  As from December 1, 2012 until redelivery, the charter rate is to be a
      minimum of $13,500 per day plus 50% of the difference between the     
      market rate and the charter rate of $13,500. The market rate is to be 
      determined annually based on the Hamburg ConTex type 3500 TEU index   
      published on October 1 of each year until redelivery.                 
(14)  This charter rate changes on July 27, 2014 to $8,225 per day until the
      earliest redelivery date.                                             
(15)  The charterer has a unilateral option to extend the charter of the    
      vessel for a period of six months at a rate of $8,500 per day.        
(i)   Assumes exercise of Owners unilateral options to extend the charter of
      these vessels for two one year periods.                               
(ii)  The vessel is expected to be delivered to its Charterers on March 3,  
      2014.                                                                 
(iii) The charterer has a unilateral option to extend the charter of the    
      vessel for two periods of 30 months each +/-90 days on the final      
      period performed, at a rate of $41,700 per day.                       
(iv)  The charterer has a unilateral option to extend the charter of the    
      vessel for a period of 12 months at a rate of $28,000 per day.        
(v)   The charterer has a unilateral option to extend the charter of the    
      vessel for a period of 12 months +/-60 days at a rate of $27,500 per  
      day.                                                                  
(vi)  Owners have a unilateral option to extend the charters of the vessels 
      for an additional period of two years at market rate, to be defined   
      annually, based on the closest category on the Contex index.          

 
(*) Denotes vessels acquired pursuant to the Framework Agreement with
York. The Company holds an equity interest ranging betw
een 25% and
49% in each of the vessel-owning entities.
 (**) ZIM is engaged in
ongoing discussions with its creditors, including vessel and
container lenders, shipowners, shipyards, unsecured lenders and bond
holders, to restructure its debt and charter obligations. Costamare
is participating in discussions with ZIM regarding concessions or
modification to the existing charter arrangements with ZIM. 


 
                                                                            
                               COSTAMARE INC.                               
                     Consolidated Statements of Income                      
                                                                            
                                                     Three-months ended     
                       Year ended December 31,          December 31,        
                     --------------------------  -------------------------- 
(Expressed in                                                               
 thousands of U.S.                                                          
 dollars, except                                                            
 share and per share                                                        
 amounts)                2012          2013          2012          2013     
                     ------------  ------------  ------------  ------------ 
                                                                            
                                                                            
REVENUES:                                                                   
Voyage revenue       $    386,155  $    414,249  $     95,193  $    112,549 
                                                                            
EXPENSES:                                                                   
Voyage expenses            (5,533)       (3,484)       (1,543)         (964)
Voyage expenses -                                                           
 related parties           (2,873)       (3,139)         (712)         (856)
Vessels' operating                                                          
 expenses                (112,462)     (115,998)      (27,762)      (30,094)
General and                                                                 
 administrative                                                             
 expenses                  (4,045)       (8,517)         (959)       (5,234)
Management fees -                                                           
 related parties          (15,171)      (16,580)       (3,753)       (4,277)
Amortization of dry-                                                        
 docking and special                                                        
 survey costs              (8,179)       (8,084)       (2,162)       (1,949)
Depreciation              (80,333)      (89,958)      (20,151)      (24,800)
Gain/ (Loss) on                                                             
 sale/disposals of                                                          
 vessels                   (2,796)          518         1,500             - 
Foreign exchange                                                            
 gains (losses)               110             8           (57)         (110)
                     ------------  ------------  ------------  ------------ 
Operating income     $    154,873  $    169,015  $     39,594  $     44,265 
                     ------------  ------------  ------------  ------------ 
                                                                            
OTHER INCOME                                                                
 (EXPENSES):                                                                
Interest income      $      1,495  $        543  $        322  $         95 
Interest and finance                                                        
 costs                    (74,734)      (74,533)      (16,894)      (17,610)
Equity gain on                                                              
 investments                    -           692             -           397 
Other                         (43)          822            50           (22)
Gain/ (Loss) on                                                             
 derivative                                                                 
 instruments                 (462)        6,548          (141)         (273)
                     ------------  ------------  ------------  ------------ 
Total other income                                                          
 (expenses)          $    (73,744) $    (65,928) $    (16,663) $    (17,413)
                     ------------  ------------  ------------  ------------ 
Net Income           $     81,129  $    103,087  $     22,931  $     26,852 
                     ============  ============  ============  ============ 
Distributed earnings                                                        
 allocated to                                                               
 Preferred Stock                -        (1,536)            -          (951)
                     ------------  ------------  ------------  ------------ 
Net Income available                                                        
 to common                                                                  
 stockholders        $     81,129  $    101,551  $     22,931  $     25,901 
                     ============  ============  ============  ============ 
                                                                            
                                                                            
Earnings per common                                                         
 share, basic and                                                           
 diluted             $       1.20  $       1.36  $       0.31  $       0.35 
                     ============  ============  ============  ============ 
Weighted average               
                                             
 number of shares,                                                          
 basic and diluted     67,612,842    74,800,000    73,658,696    74,800,000 
                     ============  ============  ============  ============ 
                                                                            
                                                                            
                                                                            
                               COSTAMARE INC.                               
                        Consolidated Balance Sheets                         
                                                                            
                                                   As of          As of     
                                                December 31,   December 31, 
                                               -------------  ------------- 
    (Expressed in thousands of U.S. dollars)        2012           2013     
                                               -------------  ------------- 
                                                                            
ASSETS                                                                      
CURRENT ASSETS:                                                             
Cash and cash equivalents                      $     267,321  $      93,379 
Restricted cash                                        5,330          9,067 
Accounts receivable                                    2,237         16,145 
Inventories                                            9,398         11,005 
Due from related parties                               2,616          2,679 
Fair value of derivatives                                165              - 
Insurance claims receivable                            1,454          1,429 
Accrued charter revenue                                5,100            409 
Prepayments and other                              
    1,862          2,450 
Vessels held for sale                                  4,441              - 
                                               -------------  ------------- 
Total current assets                           $     299,924  $     136,563 
                                               -------------  ------------- 
FIXED ASSETS, NET:                                                          
Advances for vessels acquisitions              $     339,552  $     240,871 
Vessels, net                                       1,582,345      2,187,388 
                                               -------------  ------------- 
Total fixed assets, net                        $   1,921,897  $   2,428,259 
                                               -------------  ------------- 
NON-CURRENT ASSETS:                                                         
Investment in affiliates                       $           -  $      23,732 
Deferred charges, net                                 34,099         29,864 
Accounts receivable, non current                           -          7,334 
Restricted cash                                       41,992         49,826 
Accrued charter revenue                               13,422         10,264 
                                               -------------  ------------- 
Total assets                                   $   2,311,334  $   2,685,842 
                                               =============  ============= 
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
CURRENT LIABILITIES:                                                        
Current portion of long-term debt              $     162,169  $     206,717 
Accounts payable                                       5,882          5,814 
Accrued liabilities                                    9,292         14,386 
Unearned revenue                                       5,595          9,601 
Fair value of derivatives                             55,701         55,322 
Other current liabilities                             10,772          3,140 
                                               -------------  ------------- 
Total current liabilities                      $     249,411  $     294,980 
                                               -------------  ------------- 
NON-CURRENT LIABILITIES                                                     
Long-term debt, net of current portion         $   1,399,720  $   1,660,859 
Fair value of derivatives, net of current                                   
 portion                                             125,110         47,890 
Unearned revenue, net of current portion              16,641         25,164 
                                               -------------  ------------- 
Total non-current liabilities                  $   1,541,471  $   1,733,913 
                                               -------------  ------------- 
COMMITMENTS AND CONTINGENCIES                                               
STOCKHOLDERS' EQUITY:                                                       
Common stock                                   $           8  $           8 
Additional paid-in capital                           714,100        762,142 
Accumulated deficit                                  (40,814)       (20,047)
Accumulated other comprehensive loss                (152,842)       (85,154)
                                               -------------  ------------- 
Total stockholders' equity                     $     520,452  $     656,949 
                                               =============  ============= 
Total liabilities and stockholders' equity     $   2,311,334  $   2,685,842 
                                               =============  ============= 

  
Contacts:
Company Contact:
Gregory Zikos 
Chief Financial Officer 
Konstantinos Tsakalidis 
Business Development
Costamare Inc.
Athens, Greece
Tel: (+30) 210-949-0050
Email: ir@costamare.com 
Investor Relations Advisor/ Media Contact: 
Gus Okwu
Allison+Partners
New York
Telephone: (+1) 646-428-0638